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Editing Lease Indexing Profile Information
Typically, indexing information is part of the lease agreement and would not be changed over the life of a lease. Changing lease indexing information before you have generated indexed rent is not a problem.
Changing some indexing information does not pose any issues, even after you have generated indexed rent using different values. This lease indexing information includes Indexing Frequency, Percentage Change Adjustment(%), Limit Maximum (%), Limit Minimum (%), Round New Rent To, Reset Initial Values?.
For example, suppose you are three years into a five-year lease term, and you negotiate a Limit Maximum (%) change to 2.50% for lease years three, four, and five. Setting the Limit Maximum (%) change to 1.0250, and clicking Save enables the configuration change to be processed next time the rent is scheduled to be updated.
In the event that other lease indexing information needs to be changed after you have generated indexed rent, use the following guidelines to prevent errors:
- New lease agreement: If you negotiate a new lease agreement that specifies new indexing terms, the recommended best practice is to enter a new lease to record the new Lease Indexing Profile information. In the profile, you would enter the new indexing information, such as the Date Indexing Starts and the new Lease Start and End Dates. See Entering Lease Information and Create a Lease Indexing Profile and Generate Indexed Rent Records.
- Changing the index used going forward: If you decide to change the Index Code used for a lease after having generated indexed rent using another Index Code, you will need to reset the Date Indexing Starts in the profile to the date you want to start using the new index. This ensures that the application uses the Index Value Initial that corresponds to the date you start using the new index.
- Indexed rents were generated using the wrong information: If you make a data entry error when entering Lease Indexing information, and have generated indexed rent using the wrong information, you should use the Cost Wizard to delete the erroneous base rent recurring cost records that were generated. Ensure that you keep the initial base rent transaction. You should then delete the Lease Indexing Profile with the wrong information and create a new one with the correct information.